Contents

Working with China

A Five Year Strategy for Engagement between Scotland and the
People's Republic of China

Why China?

China's growth rate in 2011 of 9.2%
[1] was considered exceptional by world standards. An annual
growth rate of 9% over the last decade has tripled the size of
Chinese Gross Domestic Product.
[2] This meant that China is estimated to have contributed to one
third of Global Growth.

China is the world's largest goods exporter and the world's
second largest goods importer. China also has the world's largest
foreign exchange reserves, reaching $3.29 trillion at the end of
September 2012.
[3]

Why Scotland?

Despite the obvious disparities in demographics, geography and
total wealth, Scotland has much to offer China. In Scotland, China
will see a country that:

values and harnesses its knowledge and talent with a strong
track record in creativity and innovation, especially in the
development of new energies; life sciences; creative industries;
financial services; and an abundance of premium food and
drink

possesses a distinct heritage, one that is proud of its
history and culture

possesses an education system that has a well deserved
reputation for academic excellence

has universities which are willing to engage together, and
with international partners, to undertake joint research
projects

is open for business and is a competitive and strategically
ideal destination for inward investment within Europe

has a strong reputation as a world class host for major
sporting and cultural events, such as the Ryder Cup, Commonwealth
Games and Edinburgh Festivals

Scotland's Ambition

The 2012-13 once in a decade transition in national leadership
in China presents every country with fresh challenges and
opportunities for establishing broader and deeper links with
China.

The Scottish Government is committed to developing a long-term
relationship with China based on shared values, partnership and
trust. Since 2006 when Scotland's first China Plan was published,
Sino-Scottish relations have gone from strength-to-strength.
In the next five years, it is our ambition to broaden and
deepen Scotland's links and common interests with
China.

We believe that strengthening this bilateral relationship will
bring substantial benefits to both countries. China will continue
to be offered assistance and support as it embarks on a new phase
of its economic and social reform programme. And Scotland will be
looking to China for opportunities to help support its economic
recovery and future prosperity.

The
UK Government and the
Scottish Government have signed the Edinburgh Agreement which
allows for a vote in 2014 on restoring the sovereignty of Scotland.
This agreement legally binds both governments to respect the
process and outcome of the vote. Scotland's engagement with China
is expected to increase no matter the result.

Scotland's ambitions for its strategic relationship with China
complements the Scottish Government's own Economic Strategy.
[4]

The "Working with China" strategy has
four guiding principles that will underpin all of
Scotland's dealings with China and against which success will be
measured. They are:

Securing Sustainable Economic Growth - building
Scotland's prosperity by strengthening links to China, through
increased trade and investment, and more developed links in
education, research, culture and sport.

Respect for Human Rights and the Rule of Law -
supporting China's process of modernisation and internal reform
and the need to balance the demands of economic development with
social justice. Scotland is justly proud of its reputation for
ethical business practices, and knows that human rights and the
rule of law are key to long-term economic success and social
stability. We will continue to share our experiences and values
in our dealings with China. For example through Scottish
Ministers' championing of climate justice, a key issue for human
rights in the 21st Century that is rising up the
UN agenda.

Understanding of Culture - attaching great
importance to learning more about China - and for China to learn
more about Scotland. Both countries through our Scotland-China
Cultural Memorandum of Understanding have committed to developing
a profound understanding of each other's country, peoples,
history, languages, cultural expression and cultural
differences.

Increasing Scotland's Influence - extending
Scotland's outreach and influence to other parts of China. The
Scottish Government has established close relationships with the
following areas:

Beijing

Shanghai

Shandong province

Shenzhen

Tianjin

Hong Kong Special Administrative Region

The Chinese Government has prioritised the economic development
in its western provinces through preferential policies such as land
credit, lower taxes and subsidies for manufacturers looking to
locate inland. Subject to resources, we will consider how Scotland
might look to further areas of potential growth in China, to
identify early opportunities to enhance the mutually beneficial
relationship already fostered with other parts of China.

Scotland's Priority Areas

The Scottish Government has identified 4 key priority areas to
focus its activities and resources in order to deliver its China
strategy:

to increase trade opportunities for Scottish business in
China and encourage more Chinese investment in Scottish industry
and infrastructure

to expand and deepen Scotland's education links with
China

to increase collaboration in research and development between
China and Scotland

to promote an innovative and creative Scotland through deeper
cultural exchanges and sporting links with China and Hong Kong
Special Administrative Region; and promoting Scotland as a
destination of choice for Chinese tourists

Where appropriate and as Sino-Scottish relations broaden and
deepen we will continue to identify opportunities for exchanges in
other fields not specifically addressed by this strategy.

In the remainder of the strategy we set out the specific targets
needed to deliver this 5 year strategy.

In the annex we set out an implementation and delivery plan and
how we will measure our targets.